However, an RAC report highlighted this week shows the council amassed over £3.5m in profit through on and off-street fines last year.

The complicated nature of local parking enforcement means that Scarborough Council administers parking in the town on behalf of the county council, which is understood to be the authority that would pick up a potential refund tab.

Yet Mr Thorne said the potentially costly gaffe could have easily been avoided.

“They didn’t consult the right people when they implemented it,” he added.

“Potentially, there was no consultation with residents, so they’d need to consult street by street to do it properly.

“My guess would be that the council will fight this, which makes it even more costly.”

North Yorkshire County Council says it will fight the ruling, stating: “We are currently reviewing the adjudication, so it would not be appropriate to comment at this stage.”

However, as they fight the ruling the signage issues have still not been amended.

Mr Thorne believes this in itself will cost the authority a small fortune, and would be an admission of guilt.

And Cllr Cross added: “When these council officers are paid so much money, they should be getting this right but instead it looks like it could end up costing the taxpayer even more.” See also page 10.